Macy’s to Lay Off Over 2K Workers, Close Five Stores
NEW YORK (WGGB/AP) — Macy’s has announced that it will close some stores and lay off over 2,000 workers in what they are calling “focused cost reductions.”
The announcement comes on the heels of a strong holiday shopping season for the department store chain.
In a statement released Wednesday afternoon, the company says that the changes, which also include organization changes and cost reductions, will save them about $100 million a year, beginning in 2014.
“The actions being announced today reinforce our focus on continuous improvement in our M.O.M. strategies (My Macy’s localization, Omnichannel integration and Magic Selling customer engagement) and will help us to maximize the impact of the exceptional talent we enjoy at every level of our organization,” says Terry Lundgren, Macy’s chairman, president and CEO.
Macy’s adds that about 2,500 employees will be laid off as a result of the organzation changes and will be eligible for severance packages.
The Cincinnati-based company plans to close five stores, in Arizona, Kansas, Missouri, New York, and Utah, and open eight others, leaving it with 844 stores nationwide once the changes are complete.
The news sent its shares up 5.5 percent in after-hours trading.
Information from the Associated Press was used in this report.